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RAK Properties on Thursday reported net profits of Dh379 million, down from Dh496 million in 2007. This represents a decrease in annual profit over 2007 of 24 per cent, the company said in a statement posted on Abu Dhabi Exchange, where it is listed. Total revenues of the developer fell to Dh425 million from Dh540 million in 2007. Investments, however, increased by 33 per cent according to a company financial statement. Booked sales came in at just over Dh2 billion, a 91 per cent increase over 2007. Following the announcement of financial results, the Board of Directors of RAK Properties has recommended that dividends to shareholders for 2008 be withheld, to be discussed at an Annual General Meeting (AGM) on March 18. Additionally, RAK Properties intends to withdraw certain investments in the land bank and real estate-based funds which it acquired in previous years. The move marks a reorientation of the company's strategy to ensure it can meet its project commitments and not be forced to cancel ongoing projects. Of these, the Julfar Tower project in Ras Al Khaimah, and the RAK Tower on Reem Island in Abu Dhabi, are expected to be completed by the end of the year, according to a company statement. The real estate development and construction sectors have been severely affected by the slowdown in the global economy, forcing developers to delay, or even to abandon projects altogether.

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